Restaurant Property with
For Sale
$800,000
234 Lime Quarry Rd, Madison, AL 35758
Well-maintained diner on two lots with customer parking and a revenue-producing billboard, offered for sale.
Property Size3,924 SF
Price / SF$203.87
Days on Market686
Property Features for 234 Lime Quarry Rd
General Information
Standard status
Active
Size
3,924 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$5,397
Amenities
3
130X262
Building Details
Year Built
1978
Listing Agency:
SR4 Realty LLC
(256) 735-4065
Listed By:
Kevin Rice · License #131679
(256) 735-3932
Source:
Xome
Added: Oct 19, 2024
Changed: Sep 1
Last Checked: Sep 4 at 3:04AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of SR4 Realty LLC
Investment Insights
Based on property information with market context.
This for-sale restaurant property is currently housing a well-established diner and includes two lots. The site is described as well maintained and provides customer parking for patrons. A revenue-producing billboard is also included on the property.
The address is 234 Lime Quarry Rd in Madison, AL 35758. Public remarks note the location is minutes from Toyota Field, I-65 and Downtown Huntsville.
For buyers seeking a single asset that combines an operating restaurant with additional revenue from on-site billboard signage, this configuration may be of interest.
The address is 234 Lime Quarry Rd in Madison, AL 35758. Public remarks note the location is minutes from Toyota Field, I-65 and Downtown Huntsville.
For buyers seeking a single asset that combines an operating restaurant with additional revenue from on-site billboard signage, this configuration may be of interest.
Key Highlights
- Well‑maintained commercial property built in 1978
- Currently operating as a diner with guest facilities listed as 3
- On two lots with 130 x 262 lot dimensions
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$54,810
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.85%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,096,200
$1.1M
Cap Rate 7%
$783,000
$783.0K
Cap Rate 9%
$609,000
$609.0K
Market Conditions
NOI Build-Up for 3,924 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$75.3K $19.20/SF
− Vacancy
−$2.3K −$0.58/SF
EGI
$73.1K $18.62/SF
− OpEx
−$18.3K −$4.66/SF
NOI
$54.8K $13.97/SF
Area
Madison County, AL
Vacancy
3.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,096,200
Cap Rate 7%
$783,000
Cap Rate 9%
$609,000
Alternative Uses
Best Use
Specialty Retail
$783.0K
$685.1K – $913.5K
NOI $54,810 @ 7.0% cap · market cap 6.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.02M
$894.1K – $1.19M
NOI $71,527 @ 7.0% cap · market cap 8.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
746
Businesses Nearby
220k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 19%
Superstores 15%
Apparel 6%
BJ's Wholesale Club
Superstores
33,339 visits/mo
0.3 miles
McDonald's
Dining
23,101 visits/mo
0.2 miles
Taco Bell
Dining
15,455 visits/mo
0.2 miles
Zaxby's Chicken Fingers & Buffalo Wings
Dining
13,169 visits/mo
0.4 miles
Duluth Trading Company
Apparel
13,060 visits/mo
0.2 miles
Demographics for 35758, AL
48,192
Population
20,322
Households
2.4
Avg Household Size
38
Median Age
64%
College-Educated
98%
High-School Grad
27.2 sq mi
ZIP Area
1,772
Density / Sq Mi
$115,780
Median Household Income
$61,321
Median Earnings
$1,375
Median Rent
$336,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Well-maintained diner on two lots with customer parking and a revenue-producing billboard, offered for sale.
Where is this breakfast & diner located?
The property is located at 234 Lime Quarry Rd Madison, AL.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: Well‑maintained commercial property built in 1978; Currently operating as a diner with guest facilities listed as 3; On two lots with 130 x 262 lot dimensions
